An Urgent Market Event Is Coming Next Week

Larry’s Note: A market event is coming up in about a week… and with stocks as volatile as they’ve been, you need to pay attention.

Because the volatility plays in our favor… and increases our payouts.

When similar situations happened in the past, I’ve helped my readers make 202%… 62.5%… 44.4%… 129.5%… 90.6%… and more. And these trades lasted just a day or two.

In fact, you could’ve turned $5,000 into $10,398 just by following each of my recommendations during this specific kind of market event.

That’s why I’m sharing an urgent message… because your next chance to get these kinds of returns is right around the corner.

Get more information right here.

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This year, markets have been volatile. Stocks tumbled into bear market territory and hit many people’s brokerage accounts in the process.

Many people are worried about the future, with inflation fears and even more interest rate hikes still on the horizon.

But I’ve been through this – and worse – before.

In fact, early in my career, I lived through the worst crash in U.S. history: Black Monday.

I’m happy to say that we’ll never see a day like Black Monday again.

But that doesn’t mean we can’t learn something from it for our current environment… especially given the urgent market event coming next week…

The Worst Crash

As a reminder, Black Monday is when the Dow closed down almost 22% on October 19, 1987. It was the largest one-day drop in its history.

There was so much volume in the market, that the computers got overwhelmed and shut down. The entire market stopped for hours at a time. Traders left the floor and wandered the streets without a clue of what to do.

It was complete pandemonium.

Of course, hindsight is 20/20. But we all should’ve seen that crash coming…

During the entire month of July 1987, the market only had one down day. It just kept going higher and higher. Euphoria was setting in.

It was a classic overextended condition. But most folks didn’t recognize it at the time.

Then, seemingly out of nowhere, it became a little more volatile in August. It didn’t seem like much to worry about at the time. The market was still up about 25% on the year.

But then September brought even more volatility. And by October, leading up to the crash, volatility was ramping up…

An Especially Volatile Day

The Friday before the crash, the market got crushed and finished near the lows.

By Monday morning, it was a total crash… Completely nuts.

Back then, I was trading at Fossett Trading Company for a guy named Steve Fossett, who was an unbelievable investor.

On the trading floor, I was short six put options and six call options. At the time, that was a big position for me. And the market just kept going down…

I initially sold the puts at $6, and I sold the calls at $6.

I wound up buying back the puts at $60… a loss of $54 per contract.

When the market goes down, generally call options go down, too. But since it was so volatile, call option premiums actually rose.

With all the volatility, these calls went to $50. If I’d bought them back at that level, then I would’ve been crushed.

But I plainly told Fossett I didn’t want to buy the options back because it was just ridiculous, considering the action that day…

I got away with it. And I’m glad I did.

The market went up 500 points the Tuesday after the crash. The calls I sold for $6 went from a massive loss of $50… to $1 per contract.

I’m lucky I got to hang on. If I had been forced to cover those calls at $50 the day before, then it would’ve blown the account to zero.

The market inefficiencies were just complete mayhem. No one knew how to react… There was a period when all trading activity basically stopped.

When the afternoon rolled around, there were more people outside the exchange than inside. People were freaking out and walking around aimlessly.

There was no market. The exchanges weren’t functioning. If you wanted to sell a stock, you couldn’t. The system totally crashed. The game was over… the market was closed.

So, we stopped working in the middle of the day.

Then on Tuesday, the market opened up, and investors got robbed. Stocks opened significantly higher than where they closed and came pretty much all the way back to Friday’s lows.

Why We’ll Never See Black Monday Again

The good news is, these days, I don’t think an event like Black Monday would be allowed to happen.

With the circuit breakers that we have now, it’s basically impossible.

The Federal Reserve just steps in and accommodates. The market closes automatically if things fall too far.

There would be panic, but now there are safeguards to that panic. If you stop the market from trading, then people go home and clear their heads.

Drastic behavior just wouldn’t continue the way it used to.

After all, I believe in the mantra that “the market never does the same thing twice.”

But the market can still experience massive shocks, and with the current volatility in the markets, I see one happening soon.

That’s why I have an “Urgent Warning” for readers about a market event that’s guaranteed to occur just days from now.

We’re coming up on another volatile period… one that’s going to amplify our potential returns.

Wall Street is already gearing up. But most retail investors will be caught off-guard and miss it.

I don’t want you to be one of them.

That’s why I’m going to show you what’s happening next week… and the best way to make money from this market event.

I’ll even share the single ticker that could help us end the year on a high note.

Go right here to learn more.

Regards,

Larry Benedict
Editor, Trading With Larry Benedict

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